What Determines Your Auto Loan Rate in Somerset, KY?
A handful of factors contribute to your Kentucky car loan interest rate, including the loan amount, your credit score, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Somerset could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment is and the more you spend over your loan’s term. Just one or two percent more could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Somerset, KY?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you begin applying for auto loans in Somerset, KY. If you've supplied your information and don't like the percentage you see, what can you do to lower it?
The loan term is one aspect you have total control over. Most car loans in Somerset are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you figure out what you can afford.
If you have less than stellar credit, boosting your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Kentucky.
Waiting to find the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Somerset, KY — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because a better one could be right around the corner. Plus, some lenders are open to negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Somerset, KY with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Somerset, KY no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can get the right deal. Complete our secure online application, choose the loan that looks best to you, and head to your Somerset dealer to purchase a new ride. Apply today to see the current lowest interest rates!